Cashing out capital gains in Virtual Currency System #3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
a. M2 money multiplier to remain the same.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to rise.
.A
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Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:
A. always lead to the most efficient allocation of resources. B. often lead to increasing inequality. C. always lead an economy to ruin. D. often lead to the most efficient allocation of resources.
The imposition of a sales tax on eggs will:
a. Cause a parallel shift downward in demand for eggs. b. Cause a parallel shift upward in demand for eggs. c. Lead to an increase in the slope of the demand curve for eggs. d. Have no effect in demand or sales of eggs since they are a small part of any family's budget.
Which of the following statements is NOT true about economic growth?
A) Growth is measured as the overall level of real GDP. B) Growth generally means that overall the members of the nation are better off materially. C) When growth occurs the production possibilities curve shifts outward. D) Growth represents an increase in a nation's productive capacity.
Suppose the state of Colorado imposes a one dollar per pack tax on cigarettes, which increases their price by 30 percent, and as a result, the quantity sold declines by 20 percent. The absolute value of the price elasticity of demand for cigarettes is equal to
a. 0.20. b. 0.67. c. 1.50. d. 3.00.